This world we are living in a highly competitive one. There is no place for mercy and failures. So there is always a desire of every person to succeed in life and do something meaningful. Different people have different approaches and every person do different type of work to make their impact on the world.
There are a lot of people who are into field of business and running their successful business. These people are growing by the virtue of their hard work and dedication. But the important thing is that the business world is very cruel.
That is why in such a scenario there is always a need to manage your business in a very prudent way. This thing of managing requires a lot of means business like attitude.
Using tally in the business
Tally erp 9 is very popular these days as this thing is very helpful in managing the accounting part of business. A lot of business people use tally and in fact it is almost used by everyone. Everyday a lot of things happen.
A lot of transcations happen. All these things are to be managed in a very clear way. In this way tally erp 9 helps a lot. This tally erp 9 thing can manage all these things. All data entries and related things can be managed easily through this tally erp 9 thing. Journal entries for all transcations are done on tally erp 9 thing.
All the entries made of accounts and everything else is needed to be protected. For this purpose jounal entries are done. This thing is called journaling. There are a lot of journal entries examples which can be taken into account.
So whatever happens in a business company throughout the whole day is put into journals and these entries are called journal entries for all transcations.
That is why this journal things is known as the primary books of Accounting. Accounting is not done without journals. All the cash related and other transcations are put into books on Accounting, Journals.
These journals make things easy for all the people as things are managed easily with these journals. These entries in journals are put into journal entries for all transcations pdf as well sometimes.
Example of journal entry
A lot of examples can be discussed related to this journal entry thing but we will take a specific example which we will explain the journal entry thing in a great way. So just take out sometime if you are into this field and read the example of journal entry carefully.
Here is the example of this journal entry in tally erp 9.
First of all we will put together all the transcations which we are going to put in the journal book as journal entries. So these are the transcations. All these are just supposed transactions which we are taking for the sake of example. This example is of a enterprise company.
- X invested 200000 as capital.
- Bought land for 105000.
- Also bought goods from tt creations on credit 200000.
- Purchased some stationery for 1000.
- Sold goods to aa cotton company for credit 45000.
- Rent paid for building to the owner of building. The rent is 1500.
- Took some cash out for personal use. The cash taken out is 5000.
- Tea expenses of staff is 100.
- Bought computers from a computer company for 30000.
- Paid commission worth 500.
- Deposit cash in to bank of 15000.
- Cash sales of 25000.
- Got cheque from aa cotton company worth 25000.
- Goods returned by aa cotton company worth 2500.
- Cash withdrawal from the bank worth 10000.
- Goods returned to the creations company worth 5000.
These all are transcations which are to be put in the journal for journal entries. There are some terms related to the journal entry terms which were to be known by you.
LF in the journal would mean ledger folio number. Dr denotes debit aspects of a transcation. To denotes the credit aspects of transcation.
Debit and credit in transcations
Before we move to the journal entry thing the user must need to known about debit and credit in different aspects in transcations. For this get to know these golden rules of Accounting for debit and credit.
- When an asset is affected- Real account rule gets applied- Debit what comes in credit what goes out.
- Debit the receiver and credit the giver when a person’s or company’s account is affected.
- Debit is all expenses and losses and credit is all incomes and gains when any expense or income is effected.
Here is our journal for all the transcations.
- Date 1.1.2010
Cash…Dr.- Debit 200000 LF- Credit-
To Capital- LF- debit- Credit- 200000
(Capital brought by Mr. X)
- Date 2.1.2010
Land Account… Dr. LF- Debit- 105000 Credit-
To cash. LF- Debit- Credit- 105000
( This entry is about land purchased for cash)
- Date 3.1.2010
Purchase Account…Dr. LF- Debit- 200000 Credit-
To TT creation. LF- Debit- Credit- 200000
( This is about credit purchase from the tt creations company)
- Date 4.1.2010
Stationery Account…Dr LF- Debit-1000 Credit-
To cash LF- Debit- Credit- 1000
( This journal entry is about stationery purchased for cash)
- Date 5.1.2010
AA cotton Account…Dr. LF- Debit- 45000 Credit-
To sales Account LF- Debit- Credit- 45000
( This is about credit sales to aa Cottons company)
Just like this way all the other transcations are to be put in the journal as the journal entries.
Advantages of journal
Maintaining a journal is really important. This is evident from the fact that every company takes this thing seriously. The biggest advantage of maintaining a journal by putting up all the entries in journal is that everything can be looked upon when there is a need.
So also try maintain a journal of all transactions in a great way to keep your business running in a great way.